Net revenue for the quarter increased 13% to $390.7 million from
$344.5 million in the second quarter of fiscal 2013.

Total comparable sales, which includes comparable store sales and
direct to consumer, remained flat for the second quarter on a constant
dollar basis. Comparable store sales for the second quarter decreased
by 5% on a constant dollar basis and direct to consumer revenue
increased 30% on a constant dollar basis.

Direct to consumer revenue increased to $63.5 million, or 16.2% of
total Company revenues, in the second quarter of fiscal 2014, an
increase from 14.3% of total Company revenues in the second quarter of
fiscal 2013.

Gross profit for the quarter increased 6% to $197.3 million, and as a
percentage of net revenue gross profit decreased to 50.5% for the
quarter from 54.0% in the second quarter of fiscal 2013.

Income from operations for the quarter decreased 14% to $67.9 million,
and as a percentage of net revenue was 17.4% compared to 22.9% of net
revenue in the second quarter of fiscal 2013.

The effective tax rate for the second quarter of fiscal 2014 was 30.1%
compared to 29.7% a year ago.

Diluted earnings per share for the quarter were $0.33 on net income of
$48.7 million, compared to diluted earnings per share of $0.39 on net
income of $56.5 million in the second quarter of fiscal 2013.

For the twenty-six weeks ended August 3, 2014:

Net revenue for the first two quarters of fiscal 2014 increased 12% to
$775.3 million from $690.3 million in the same period of fiscal 2013.

Total comparable sales increased 1% for the first two quarters on a
constant dollar basis. Comparable store sales for the first two
quarters decreased by 5% on a constant dollar basis and direct to
consumer revenue increased 27% on a constant dollar basis.

Direct to consumer revenue increased 25% to $129.5 million, or 16.7%
of total company revenues, in the first two quarters of fiscal 2014,
an increase from 15.0% of total company revenues in the first two
quarters of fiscal 2013.

Gross profit for the first two quarters of fiscal 2014 increased 10%
to $393.1 million, and as a percentage of net revenue gross profit was
50.7% for the first two quarters as compared to 51.7% in the same
period of fiscal 2013.

Income from operations for the first two quarters of fiscal 2014
decreased 5% to $137.7 million, and as a percentage of net revenue was
17.8% as compared to 21.0% of net revenue in the same period of fiscal
2013.

Tax expense for the first two quarters was $73.5 million, which
included a non-recurring adjustment of $31.3 million related to the
repatriation of foreign earnings that will be used to fund the share
buyback program. The normalized tax rate before the $31.3 million
non-recurring tax adjustment would have been 29.9%, compared to 29.7%
a year ago. The tax rate for the first two quarters of fiscal 2014,
including the non-recurring tax adjustment, was 52.0%.

Excluding the non-recurring tax adjustment, diluted earnings per share
were $0.68 in the first two quarters of fiscal 2014. Including the
non-recurring tax adjustment, diluted earnings per share for the first
two quarters of fiscal 2014 were $0.46, which included a $0.22 per
share impact from the non-recurring tax adjustment.

The Company ended the second quarter of fiscal 2014 with $725.1 million
in cash and cash equivalents compared to $610.3 million at the end of
the second quarter of fiscal 2013. Inventory at the end of the second
quarter of fiscal 2014 totaled $176.5 million compared to $163.0 million
at the end of the second quarter of fiscal 2013. The Company ended the
quarter with 270 stores.

Laurent Potdevin, lululemon’s CEO, stated: "We are pleased to be on
track with the implementation of our strategic road map, and are
starting to see the results of our work across product, brand and
international expansion." Mr. Potdevin continued: “While there is still
much to be done, we are making meaningful progress on building a
scalable foundation for our next phase of global growth, and I'm excited
about the collaboration between our Whitespace team and ambassadors to
accelerate innovation into the future."

Updated Outlook

For the third quarter of fiscal 2014, we expect net revenue to be in the
range of $420 million to $425 million based on a total comparable sales
increase in the low single digits on a constant-dollar basis. Diluted
earnings per share are expected to be in the range of $0.36 to $0.38 for
the quarter. This guidance assumes 144.7 million diluted
weighted-average shares outstanding and a 30.2% tax rate. The guidance
does not reflect potential future repurchases of the Company's shares.

For the full fiscal 2014, we now expect net revenue to be in the range
of $1.780 billion to $1.800 billion based on a total comparable sales
increase in the low single digits on a constant-dollar basis. Diluted
earnings per share are expected to be in the range of $1.51 to $1.56 for
the full year, or $1.72 to $1.77 normalized for the non-recurring tax
adjustment incurred in the first quarter of fiscal 2014 related to the
repatriation of foreign earnings that will be used to fund the share
buyback program. This guidance assumes 145.2 million diluted
weighted-average shares outstanding and a 38.5% tax rate, which includes
the above tax adjustment, or 30.2% before the tax adjustment. The
guidance does not reflect potential future repurchases of the Company's
shares.

Conference Call Information

A conference call to discuss second quarter results is scheduled for
today, September 11, 2014, at 9:00 a.m. Eastern time. Those interested
in participating in the call are invited to dial 1-877-303-3203
approximately 10 minutes prior to the start of the call. The conference
call will also be webcast live at www.lululemon.com.
The webcast will be accessible on our website for approximately 30 days
after the call.

About lululemon athletica inc.

lululemon athletica (NASDAQ:LULU) is a yoga-inspired athletic apparel
company that creates components for people to live long, healthy and fun
lives. By producing products that help keep people active and stress
free, lululemon believes that the world will be a better place. Setting
the bar in technical fabrics and functional designs, lululemon works
with yogis and athletes in local communities for continuous research and
product feedback. For more information, visit www.lululemon.com.

Non-GAAP Financial Measure

Constant-dollar net revenue changes, which exclude the impact of changes
in foreign exchange rates, is not a United States Generally Accepted
Accounting Principle (“GAAP”) performance measure. We provide
constant-dollar net revenue changes because we use the measure to
understand the underlying growth rate of revenue excluding the impact on
a quarter-by-quarter basis of changes in foreign exchange rates, which
are not under management’s direct control. We believe that disclosing
net revenue changes on a constant-dollar basis is useful to investors
because it enables them to better understand the level of growth of our
business.

The presentation of this financial information is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP.
For more information on this non-GAAP financial measure, please see the
table captioned “Reconciliation of Non-GAAP Financial Measure – Constant
dollar changes” included in the accompanying financial tables, which
includes more detail on the GAAP financial measure that is most directly
comparable to non-GAAP financial measures and the related
reconciliations between these financial measures.

Forward-Looking Statements:

This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934 that involve risks, uncertainties
and assumptions, such as statements regarding our future financial
condition or results of operations and our prospects and strategies for
future growth. In many cases, you can identify forward-looking
statements by terms such as "may," "will," "should," "expects," "plans,"
"anticipates," "outlook," "believes," "intends," "estimates,"
"predicts," "potential" or the negative of these terms or other
comparable terminology. These forward-looking statements are based on
management’s current expectations but they involve a number of risks and
uncertainties. Actual results and the timing of events could differ
materially from those anticipated in the forward-looking statements as a
result of risks and uncertainties, which include, without limitation:
our ability to maintain the value and reputation of our brand, including
any negative publicity regarding our products or the production methods
of our suppliers or manufacturers; the acceptability of our products to
our guests, including receiving products that comply with our technical
specifications and quality standards; our reliance on and limited
control over third-party suppliers to provide fabrics for and to produce
our products; an economic downturn or economic uncertainty in our key
markets; our exposure to various types of litigation; increasing product
costs and decreasing selling prices; our ability to anticipate consumer
preferences and successfully develop and introduce new, innovative and
updated products; our ability to accurately forecast customer demand for
our products; any unforeseen disruption of our information systems; any
material disruption of our information systems; our ability to manage
our growth and the increased complexity of our business effectively; the
fluctuating costs of raw materials; our ability to expand
internationally in light of our limited operating experience and limited
brand recognition in new international markets; our highly competitive
market and increasing competition; our ability to deliver our products
to the market and to meet customer expectations if we have problems with
our distribution system; our ability to protect our intellectual
property rights; our ability to cancel store leases if an existing or
new store is not profitable; increasing labor costs and other factors
associated with the production of our products in China; our ability to
successfully open new store locations in a timely manner; our ability to
comply with trade and other regulations; the continued service of our
senior management; seasonality; fluctuations in foreign currency
exchange rates; the operations of many of our suppliers are subject to
international and other risks; our ability to source our merchandise
profitably or at all; and other risks and uncertainties set out in
filings made from time to time with the United States Securities and
Exchange Commission and available at www.sec.gov,
including, without limitation, our most recent reports on Form 10-K and
Form 10-Q. You are urged to consider these factors carefully in
evaluating the forward-looking statements contained herein and are
cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by these cautionary
statements. The forward-looking statements made herein speak only as of
the date of this press release and we undertake no obligation to
publicly update such forward-looking statements to reflect subsequent
events or circumstances, except as may be required by law.

lululemon athletica inc.

Condensed Consolidated Statements of Operations

Expressed in thousands, except per share amounts

Thirteen Weeks

Thirteen Weeks

Twenty-Six

Twenty-Six

Ended

Ended

Weeks Ended

Weeks Ended

August 3, 2014

August 4, 2013

August 3, 2014

August 4, 2013

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Net revenue

$

390,708

$

344,513

$

775,326

$

690,295

Costs of goods sold

193,401

158,558

382,275

333,616

Gross profit

197,307

185,955

393,051

356,679

As a percent of net revenue

50.5

%

54.0

%

50.7

%

51.7

%

Selling, general and administrative expenses

129,419

106,969

255,362

211,804

As a percent of net revenue

33.1

%

31.1

%

32.9

%

30.7

%

Income from operations

67,888

78,986

137,689

144,875

As a percent of net revenue

17.4

%

22.9

%

17.8

%

21.0

%

Other income (expense), net

1,890

1,295

3,533

2,796

Income before provision for income taxes

69,778

80,281

141,222

147,671

Provision for income taxes

21,030

23,816

73,493

43,928

Net income

$

48,748

$

56,465

$

67,729

$

103,743

Basic earnings per share

$

0.34

$

0.39

$

0.47

$

0.72

Diluted earnings per share

$

0.33

$

0.39

$

0.46

$

0.71

Basic weighted-average shares outstanding

145,180

144,818

145,282

144,650

Diluted weighted-average shares outstanding

145,544

145,916

145,715

145,901

lululemon athletica inc.

Condensed Consolidated Balance Sheets

Expressed in thousands

August 3, 2014

February 2, 2014

(unaudited)

ASSETS

Current assets

Cash and cash equivalents

$

725,073

$

698,649

Inventories

176,502

186,090

Other current assets

72,527

58,100

Total current assets

974,102

942,839

Property and equipment, net

285,849

255,603

Goodwill and intangible assets, net

27,938

28,201

Deferred income taxes and other non-current assets

10,031

23,045

Total assets

$

1,297,920

$

1,249,688

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$

7,100

$

12,647

Other current liabilities

107,238

100,098

Income taxes payable

562

769

Total current liabilities

114,900

113,514

Non-current liabilities

56,353

39,492

Stockholders’ equity

1,126,667

1,096,682

Total liabilities and stockholders’ equity

$

1,297,920

$

1,249,688

lululemon athletica inc.

Condensed Consolidated Statements of Cash Flows

Expressed in thousands

Twenty-Six Weeks

Twenty-Six Weeks

Ended

Ended

August 3, 2014

August 4, 2013

(unaudited)

(unaudited)

Cash flows from operating activities

Net income

$

67,729

$

103,743

Items not affecting cash

57,908

43,244

Other, including net changes in other non-cash balances

(1,652

)

(76,056

)

Net cash provided by operating activities

123,985

70,931

Net cash used in investing activities

(52,102

)

(44,014

)

Net cash (used in) provided by financing activities

(57,167

)

6,305

Effect of exchange rate changes on cash

11,708

(13,128

)

Increase in cash and cash equivalents

26,424

20,094

Cash and cash equivalents, beginning of period

$

698,649

$

590,179

Cash and cash equivalents, end of period

$

725,073

$

610,273

lululemon athletica inc.

Reconciliation of Non-GAAP Financial Measure

Constant-dollar changes in total comparable sales

(unaudited)

Thirteen Weeks

Thirteen Weeks

Twenty-Six

Twenty-Six

Ended

Ended

Weeks Ended

Weeks Ended

August 3, 2014

August 4, 2013

August 3, 2014

August 4, 2013

% Change

Total comparable sales (GAAP)1

(1

)%

12

%

(1

)%

12

%

Adjustments due to foreign exchange rate changes

1

%

1

%

2

%

-

%

Total comparable sales in constant dollars1

-

%

13

%

1

%

12

%

1 Total comparable sales includes comparable corporate-store
sales and direct to consumer sales.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding lululemon athletica inc (PR)'s business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.